The JSE was sharply lower at midday on Monday as rekindled credit fears continued to spill over on to world markets.
The JSE opened in negative territory and weakened further during the morning session on last week’s news that the United Kingdom’s fifth largest mortgage lender, Northern Rock, used the Bank of England as a lender of last resort, which led to a fear that the credit crisis had not disappeared.
By 11.58am, the JSE’s all-share index had lost 1,5%, as the gold- and platinum-mining indices shed 0,89% and 1,48% respectively. Resources gave up 1,48% and industrials fell 1,17%. Financials were off 1,63% and banks retreated 0,79%.
The rand was bid at 7,19 to the United States dollar from 7,15 when the JSE closed on Friday, while gold was quoted at $709,85 a troy ounce from $714,60 at the JSE’s last close.
“We have dropped on the back of the Northern Rock debacle in the UK, which is spilling fears on to world markets,” said a local equities trader.
Shortly before midday, the FTSE 100 was 1,67% weaker, at 6 184,10 points.
On the JSE, gold miner AngloGold Ashanti pulled back R3 to R317 and Goldfields gave up R1,63, or 1,35%, to R118,75, but Harmony perked up ten cents to R80,60.
In the resources sector, Anglo American lost R10,15, or 2,43%, to R408,05, BHP Billiton slumped R4,05, or 1,9%, to R209,25, and petrochemical giant Sasol fell R1,70 to R303,30.
Platinum stock Anglo Platinum gave up R9,01 to R985,49, Impala Platinum eased R4,45, or 2,06%, to R211,55 and Lonmin was off R8,02, or 1,67%, to R473.
Aquarius Platinum decreased R4,23, or 1,85%, to R225.
Among construction and building stocks, Basil Read slumped 3,25%, or R1,02, to R30,38 and Murray and Roberts dipped R2,50, or 2,87%, to R84,50.
Vehicle tyre and alloy wheel distributor Tiger Auto shed 80 cents, or 5,8%, to R13.
Business support services group Bidvest dropped R3,25, or 2,34%, to R135,75, and brewer SAB Miller dipped R1,50 to R190.
Among retailers, Pick n Pay was down 2,32%, or 80 cents, to R33,70, but Truworths edged up 13 cents to R32,63 and Massmart added 44 cents to R86,64.
Financial stocks, Investec pulled back R2,60, or 3,46%, to R72,60 and Investec retreated 3,71%, or R2,79, to R72,35.
Hotel group Sun International dropped 3,63%, or R5,44, to R144,56.
In the telecommunications sector, fixed-line operator Telkom was R1,85, or 1,02% lower, at R178,75, and mobile network operator MTN Group slipped R2,29, or 2,04%, to R110,01.
Banking group Absa was 35 cents lower at R124,25 and Nedbank gave up 2,09%, or R2,70, to R126,30.
Short-term insurer Santam lost R3,89, or 3,38%, to R111,10, and life assurance group Liberty was off 2,12%, or R1,88, to R86,61. — I-Net Bridge